ESG at LAC
Here we introduce LAC's ESG-related initiatives.
- LAC's ESG Stance
- S: Social
- E: Environmental
- G: Governance
LAC's ESG Stance
Management focused on ESG-related considerations (Environment, Society, and Governance) is now demanded of companies working to earn the trust and confidence of stakeholders, rise in public esteem, achieve sustained growth, and increase corporate value over the longer term.
At LAC we recognize that our corporate philosophy, to "become an indispensable member of society by constantly evolving and continuously growing with a high level of corporate management for sustainability", is both the starting point and at the same time signifies the social significance of the company's very existence.
By helping to ensure the safety of cyberspace, we help enable people to utilize information with peace of mind. We also strive to earn the trust of capital markets by promoting fair and transparent management.
Our goal is to become an indispensable member of the society by constantly evolving and continuously growing with a high level of corporate management for sustainability.
LAC efforts toward solving societal issues
LAC contributes to the solution of societal issues through its work in the two business fields of "cybersecurity" and "system development".
In particular, in response to the societal issue of cybercrime we are contributing to the realization of a safe and secure cyberspace as a leading company in the industry with our strengths in cybersecurity, one of our defining features. Such efforts also play a major role in increasing our corporate value.
In addition, through our corporate activities we are advancing a wide range of collaborative efforts and awareness-raising initiatives in the cybersecurity field for governmental agencies, educational institutions, and so on. We believe that such efforts will lead to increased understanding and awareness of cybersecurity, which in turn will lead to the promotion of security measures throughout wider society, thereby creating a virtuous cycle of increasing cyberspace safety and security through our business.
Through system development, we believe that we can contribute to the enrichment of society by means such as building infrastructure in on-premise and cloud environments that meet the needs of our corporate customers, helping them improve their operational efficiency and solve labor shortage issues through means such as workstyle reforms, and also reduce their environmental impact.
In the cybersecurity and IT services industries, where remarkable technological advances are being seen, securing diverse and talented human resources is imperative. To this end, we are actively working to advance workstyle reforms with focus on enhancing job satisfaction. And by promoting corporate activities that take diversity into consideration, we aim to contribute to the resolution of societal issues and enhance our corporate value in a sustained manner.
These efforts are the very essence of our corporate philosophy of being "an indispensable member of society". We believe that ESG initiatives are a crucial part of promoting "a high level of corporate management for sustainability".
Main initiatives pursued through our business
Main initiatives pursued through corporate activities
- S: Social; E: Environmental; G: Governance
(Please click/tap on the tabs above for more details)
Contribution to the cybersecurity field
Society is increasingly shifting online, and as the digitalization of society progresses with the use of IoT and 5G in the future, the number of companies and organizations suffering cyber damage is expected to increase as more and more criminals exploit these technologies.
As a professional cybersecurity company, we not only protect companies and government agencies against cybercrimes that cause information leaks and other problems, but also actively perform societal contribution activities in order to help make society safer and more secure. We disseminate information through various means such as conducting awareness-raising activities, providing educational institutions and the like with services such as educational lectures, and by publishing reports on cyberattacks based on information we gather while providing our services.
Promotion of awareness-raising activities
CYBER GRID Japan, our cybersecurity research division, conducts advanced research on countermeasures against cyberattacks. In addition, a specialized organization established within CYBER GRID Japan promotes educational activities on information security and information ethics around Japan in coordination with people involved in industry, academia, and government, including activities targeting the field of education.
In recent years, as use of the Internet and social media has expanded, there has been an increase in the number of cases where children become victims of cybercrime. We therefore work on awareness-raising activities on a daily basis with the aim of helping to minimize the harm that cybercrime causes.
Based on such activities, in 2019 we published our online "Information Literacy Training Guidebook", which indicates in an easy-to-understand manner the level of mastery required for each age group and personal position.
Issuing security reports
We publish periodic reports providing updates on the situation with cyberattacks based on information that LAC gathers through the provision of services by units such as the Japan Security Operation Center, Cyber Emergency Center, and Security Assessment Center. We provide these security reports to companies and public organizations to alert personnel and help them implement countermeasures within their organizations.
We also issue alerts as required, providing information on cyberattacks with significant potential impact on society that have been detected and identified by cybersecurity engineers.
Coordination with governmental agencies, security organizations, etc.
To raise awareness of cybersecurity and contribute to the development of specialized human resources, we provide operational support to the secretariats of security-related organizations in coordination and collaboration with many different companies and organizations.
In addition to contributing to national information security policy through coordination with government organizations such as the National Center of Incident Readiness and Strategy for Cybersecurity (NISC) and the Information-technology Promotion Agency (IPA), we continue to contribute to invigoration of the information security field through coordination and collaboration with a wide range of security-related organizations.
The main organizations LAC collaborates with:
- Security Camp Committee
- Security Promotion Realizing sEcurity meAsures Distribution (SPREAD)
- Nippon CSIRT Association
- Japan Smartphone Security Association (JSSEC)
- Japan Cybercrime Control Center (JC3)
- Grass Roots Activity For cyber SECurity-Japan (Grafsec)
- Japan Network Security Association (JNSA)
- Information Security Education Providers Association (ISEPA)
- DataBase Security Consortium (DBSC)
Company tours (JSOC tours)
To help inform the public about the importance of cybersecurity measures, we give guided tours of our Japan Security Operation Center (JSOC) to members of the general public.
A variety of people, including corporate groups and junior and senior high school students, participate in the JSOC tours to deepen their understanding of the importance of information security measures and the roles that LAC plays.
Note: JSOC tours have been suspended for the time being as a COVID-19 precaution.
Involvement with employees
To continue to grow together with employees, LAC respects the attitude of constantly taking on new challenges, and is working to ensure that our diverse workforce is able to play active roles to the fullest.
We are working to create an environment and organization where members of our diverse workforce can play active roles, regardless of factors such as race, gender, or age. We have tackled a variety of initiatives, such as promoting participation in the workforce by women and people with disabilities, establishing a starting salary system that does not differentiate between employees based on their academic records (such as whether they are university or high school graduates, etc.), and establishing a retirement age of 65.
Promoting women's participation in the workplace
LAC is proactively working on initiatives such as increasing the number of women in managerial positions, and we received "Eruboshi" certification* in 2019 as a company making exemplary contributions to promoting women's participation in the workplace. When receiving Eruboshi certification, companies are assessed using a three-level rating system based on how well they meet the required standards, and LAC has earned the highest, three-star, certification.
* Eruboshi certification
A system for recognizing companies that excel in promoting women's participation in the workplace and that meet certain criteria based on the Act on the Promotion of Female Participation and Career Advancement in the Workplace.
In 2020, 8.2% of LAC's managerial staff were women (non-consolidated basis), which is higher than the average in Japan of 7.7%*. We are working towards the goal of raising this to at least 20%.
* According to data in a 2020 directory of socially responsible corporations published by Toyo Keizai Inc.
Promoting participation in the workplace by people with disabilities
LAC has employees with disabilities in its workforce who proactively fulfil roles as back-office department staff and technical department engineers.
Sho Sotoya, who is visually impaired, belongs to CYBER GRID Japan, our cybersecurity research division and has worked for many long years as an engineer in the security field. In 2018, he received a Cybersecurity Encouragement Prize from the Minister for Internal Affairs and Communications. Cybersecurity Encouragement Prizes recognize individuals and organizations who achieve outstanding results on the frontlines of cybersecurity.
CYBER GRID Japan also employs a number of people with visual impairments as researchers and is moving ahead with the hiring of new graduates following the completion of internships.
As of fiscal 2020, 2.4% (non-consolidated) of LAC employees are people with disabilities (the Act on Employment Promotion etc. of Persons with Disabilities stipulates a minimum of 2.3% from March 1, 2021).
Work-life balance initiatives
To ensure that LAC remains a company that continues to grow and where people feel job satisfaction, we are proactively working to advance workstyle reforms. Our main focus is creation of environments where each employee can grow while implementing work style reforms of their own, and we are taking a flexible approach based on respect for work-life balance.
Additionally, to achieve work-life balance in line with different life stages and to facilitate greater work efficiency, we promote teleworking to allow employees to work in a variety of ways through effective utilization of time and place.
Promotion of work-style reforms through teleworking
In anticipation of road traffic congestion during the Tokyo Olympic and Paralympic Games which were scheduled to be held in 2020 but subsequently postponed to 2021), in 2019 we prepared an ICT environment that would allow all employees to telework. We also held telework trials beforehand including scheduling a telework week.
In response to the COVID-19 pandemic, the entire company switched to teleworking from home in late March 2020. Even following the subsequent declaration of a state of emergency, we were able to secure the safety and peace of mind of our employees without any significant impact on business operations. Even after the state of emergency was lifted, approximately 65%* of employees continue to work from home and we maintain a system predicated on teleworking as much as possible.
※ As of end of March 31, 2021
In addition, we are implementing a range of measures to stimulate employee communication such as holding various events in which all employees can participate even when working from home, including events proposed by business units and staff.
In recognition of these efforts, LAC was selected in 2020 as one of the "100 Telework Pioneers" by the Ministry of Internal Affairs and Communications.
Enhancement of LAC's leave system, which also contributes to the welfare of society
LAC has introduced frameworks for childcare and nursing care leave, sick/injured child care leave, etc. as part of its activities aimed at contributing to the welfare of society. In anticipation of an increase in the number of employees getting married or giving birth, as well as an increase in the number of employees needing to provide nursing care to their parents, in 2020 we enhanced the leave system by raising the age limit for sick/injured child care leave, introducing the handling of nursing care leave as paid leave, establishing a new leave program for those engaging in volunteer activities, and other enhancements.
The enhancement of these systems was triggered by an internal survey, and implemented in response to the many requests we received from within the company.
Our main businesses are cybersecurity and system development, and our business model has a low environmental impact compared with those of industrial manufacturers that operate factories and other such facilities. For that reason, we are mainly focusing our efforts on reducing the environmental impact of our office work.
Appropriate use of paper and electricity and promotion of the three Rs
As part of our efforts to reduce our environmental impact, we are promoting the appropriate use of paper and electricity by going paperless and conserving electricity in the office, and also reducing waste through the 3Rs (reducing, reusing, and recycling). In addition to the promotion of green purchasing in procurement and selection, we are also working optimize temperature settings for air conditioning and heating throughout the year by abolishing dress codes.
The Hirakawacho Mori Tower, in which LAC's head office is located, is set up to facilitate a high level of energy conservation, and we are implementing efficient energy conservation and management, including compliance with greenhouse gas emission regulations. Other measures include turning off lights in accordance with the occupancy levels on each floor.
LAC employees conscientiously carry out activities under our Environment Policy on an individual basis, and this is facilitating reductions in areas such as volume of paper used and electricity usage (LAC's head office has obtained ISO 14001:2015 certification).
Note: Data is for the Hirakawacho office (head office) but also includes the Toyocho office from fiscal 2020. Note that the number of floors used at the Hirakawacho office increased in fiscal 2019 and fiscal 2020.
Note: Data is for the Hirakawacho office (head office). The number of floors used at the Hirakawacho office increased in fiscal 2019 and fiscal 2020.
Reducing paper and electricity use by promoting teleworking
In response to the COVID-19 pandemic, the entire company switched to teleworking from home in late March 2020 in order to ensure the safety of employees and others, and we continued to maintain a system predicated on teleworking as much as possible even after the government lifted the state of emergency. Since then the amount of paper and electricity used in our offices has decreased, and the amount of paper used in the twelve months of fiscal 2020 was approximately 60% lower than in fiscal 2019, and the amount of electricity used was reduced by approximately 10% compared with fiscal 2019. Although there is environmental impact associated with teleworking, internal and external meetings via web conferencing, which do not use paper, are becoming increasingly common, and we will continue to work on reducing our environmental impact.
Corporate governance initiatives
We are working to establish a governance structure that ensures effective and efficient management in order to achieve sustained growth and enhance corporate value. We have established a Management Committee in addition to the Board of Directors to separate management supervisory functions from business execution functions and thereby clarify areas of responsibility, accelerate business execution, and increase the transparency of decision-making.
Promotion of an enhanced governance system
In April 2020, a new Executive Officer system was introduced in which Executive Officers take on authority and responsibility for individual business areas. This system allows the Board of Directors to focus on monitoring and supervising business execution.
At the annual general meeting of shareholders in June 2020 our governance system was strengthened with greater transparency and diversity with an increase in the proportion of independent outside directors from two of nine directors (22%) to four (44%), and the appointment of our first female director.
In addition, we have accepted directors from KDDI Corporation since forming a business and capital alliance with that company in 2013.
Training for all employees
LAC conducts periodic training for all employees through means such as utilizing e-learning to teach content that employees ought to know and comply with, such as compliance issues, risk management, and environmental issues. The main areas covered by training for all employees are as follows:
- Information security training (basics)
- Personal information protection training
- Information ethics training
- Information security training
- Training on exclusion of antisocial forces
- Environmental management systems training
- Compliance training
- Training on insider trading
- Risk management training
For more details on corporate compliance initiatives, see "Corporate Governance" in the Management Policies section of our website.